Is Broadcom in Trouble Now That Alphabet Is Getting Chips From Marvell Too?

Broadcom's stock dropped over 10% after Alphabet announced an expanded partnership with Marvell Technologies for custom AI chips. However, the article argues this shouldn't concern investors, as Broadcom remains the dominant leader in custom AI chip design (ASICs) with strong fundamentals. Alphabet's diversification with Marvell mirrors how Meta works with multiple GPU suppliers, and doesn't necessarily mean reduced Broadcom orders. Broadcom's AI segment showed 143% year-over-year revenue growth and management expects it to more than triple in the next quarter.